Anysphere, maker of Cursor AI, raises $900M at $9B valuation
Anysphere, the company behind the AI-powered coding assistant Cursor, has secured a massive $900 million in new funding, pushing its valuation to approximately $9 billion. The round was led by Thrive Capital, with participation from Andreessen Horowitz (a16z) and Accel, signaling growing investor appetite for cutting-edge AI developer tools.
This latest raise marks a significant leap from Anysphere’s previous valuation of $2.5 billion during a $105 million round in December 2024, which was also backed by Thrive and a16z. With over $173 million raised before this new round, the startup’s total funding now approaches $1.1 billion.
Anysphere’s Cursor has gained traction among developers by offering an AI-native code editing experience, competing in a space where traditional IDEs are being reimagined through the lens of generative AI. The rapid valuation surge underscores how investors are betting heavily on tools that integrate deeply into the software development workflow.
According to reports, competition among venture capital firms has intensified, with heavyweights like Index Ventures and Benchmark eager to participate. However, existing backers seem determined to double down on their investment, limiting access to outsiders.
Anysphere isn’t alone in the race. Rival AI coding startup Windsurf has reportedly been seeking funding at a $3 billion valuation, and OpenAI — already an investor in Anysphere — was allegedly exploring an acquisition of Windsurf at that same price point earlier this year.
As the AI arms race continues, especially within the developer tools segment, Anysphere’s explosive growth signals a broader trend: AI-native platforms that embed themselves into core workflows are becoming some of the most prized assets in tech.
